Student Loans : News, Updates and Blog Posts

Without a doubt, graduate school is the most expensive type of schooling you can pay for in the continuum of higher education. Due to the amplified nature of your expenses when pursuing an advanced degree, the government and many private lenders have a variety of programs and relaxed restrictions for graduate borrowers.

Did you know you’re allowed to borrow more money in your lifetime?

The Department of Education currently allows graduate and post graduate students pursuing degree programs to borrow up to $138,500 in federal loans throughout your lifetime. Medical students actually get an even better deal and can borrow up to $224,000. If you’re interested in learning more, check out my blog on borrowing limits.

If you’re wondering being able to put yourself into more debt is a good thing, the answer lies in the details. No matter how you slice it, unless you are incredibly wealthy, you will have to take out loans to pay for your advanced degree(s). The benefit of being able to take out more federal loans than private ones is the fact that 9 times out of 10, federal loans have much lower interest rates and better repayment plans.

For instance, the Income-Based Repayment (IBR) plan available through the Department of Education bases your monthly payments off of your total income; if you are jobless or are making very little money for your first few years out of school, your payments will likely be zero or near zero. Crazy, huh? You will not find a repayment plan anywhere near that generous outside of federal loan offerings.

ScholarshipPoints Redemption Code: GRADTIP310

Have you ever imagined yourself saving lives for a living? A career in medicine can do that for you. But medical school is not easy. It’s grueling and demanding, and certainly not cheap. According to the Association of American Medical Colleges, the average debt incurred by medical school graduates is $156,456. So how can you get the student loans you need for the white coat and stethoscope – without breaking the bank?

Here’s how:

Federal loans. Many of the same federal loan options available to you as an undergraduate are still an option for attending medical school. Just fill out a new FAFSA application as an independent student to determine your financial aid need.  You can borrow up to $20,500 ($8,500 of which can be subsidized) and the loan carries a 6.8 percent interest rate. You can also file for a Grad PLUS loan, which allows you to borrow up to the cost of education minus any other financial aid. The Grad PLUS loan carries an 8.5% interest rate.

Private Loans

Medical school loan: If federal aid is not enough, you can cover some of the cost with a private medical school loan, which allows you to borrow up to the cost of attendance. The annual maximum is $45,000. Click here to apply.

Medical residency loan: Those pursuing a career in a certain type of residency program might find themselves facing costs not usually covered in financial aid award packages. A medical residency loan will cover expenses related to medical board exam prep, and even relocation. This is a one-time loan in which you can borrow up to $20,000. Click here for more information.

There are also options for earning money while participation in internships or studying for your boards. Click here for a complete overview of your medical school loan options.

As with your undergrad loans, you have the option to consolidate once you graduate, spreading out your loan payments and possibly lowering your interest rate.

We’ll be back next week with information on paying for an MBA. Until then, the doctor is out.

ScholarshipPoints code: MED0310

Attention all graduate students: if you have not already filed your FAFSA for the upcoming school year, start it ASAP! No matter if you are starting a brand new degree program, or working toward finishing an existing one, your FAFSA is the first thing most schools look at when deciding your financial aid.

The deadlines for most schools are here now, and every day you wait to complete the form, the greater the chance that need-based aid from your school could shrink. It’s vital to keep in mind that many financial aid departments will not even starting putting your award package together until they receive their report from the government based on your FAFSA. This obviously doesn’t apply to merit-based scholarships (like the ones you can earn for having a good GPA or being part of a special honor society), but anything else will likely need your FAFSA information.

If you need any help filling out the form, check out our Financial Aid Forum and post a question. Between our dedicated group of knowledgeable users and experts, we usually are able to answer most questions within a day of posting.

As a recently graduated student, I have seen firsthand what types of programs have been big recently for my peers pursuing advanced degrees. Due to the expensive nature of post-undergraduate education, prospective students are looking for the highest value, in the shortest amount of time, at the best price possible. This has lead many schools to start offering hybrid degrees and combination programs to increase their own admissions rates, as well as cater to what students are seeking.

Hybrid Degrees

If you are looking to go into a technology-related industry, such as Intellectual Property law, high-tech marketing, etc., many employers have begun to require their job candidates to possess multidisciplinary knowledge. This often involves a science background AND a business background — not exactly a common skill set. To address this need, many graduate schools have started hybrid degree programs; they contain an accelerated curriculum of two very different studies and run simultaneously. One example of this would be a Professional Science Master’s degree (P.S.M.), it is a fusion of depth learning in math, science, or engineering with a more traditional MBA program.

Headstart Degrees

A leapfrog degree, or “headstart” degree (as I like to call it), is a course of study where an undergraduate student spends their last one or two semesters taking graduate classes to shorten the length of their Master’s degree. This is accomplished by taking all core and required classes at the expense of free electives, and then spending all those free electives at the end of your time in school on graduate classes. Not every school allows this, but it is becoming very popular — ask your academic adviser for more details.

Combination Degrees

Arguably one of the most popular trends in recent years, the combination degree has gained a lot of traction in higher education. Essentially, it allows you to compact two advanced degrees into an accelerated course of study that can potentially shave a year or two off your studies. The most widely adopted incarnation of this concept is the joint MBA/JD programs offered by many universities with business and law schools.

Online Degrees

Recently, online degrees have exploded in volume due to their more flexible nature. As a working adult, it is far easier to take an online course than a brick & mortar one because they are offered at more times during the day, and they allow you to complete your coursework on a schedule that is more tailored to your lifestyle. Practically every common degree has an online version as well, so check an online school out if you need to work but still want to earn an advanced degree.

One thing I can advise about these programs is that with the exception of the leapfrog degree, they are all very academically rigorous and intense. If you choose to undergo a hybrid or combination degree, taking out loans is pretty much a necessity to keep your financial stress level low and allow you to focus on your studies. Remember to file your FAFSA to apply for federal financial aid (yes, it absolutely is available to grad students), and if necessary, a private student loan can help cover your other expenses.

ScholarshipPoints Redemption Code: POPGRAD2010

Law school can be a terrific option for those looking to continue their education. But it can get expensive. The average cost of a public law school is $16,836 per year (according to the American Bar Association), and that’s before books and other fees. It can be even more expensive if you attend a private law school and/or elect to live on campus.

If you envision leaving law school and becoming senior partner right away, living in a big house with fancy cars, you’re in for a rude awakening. Even the most successful law students from the most prestigious law schools have to cut their teeth in internships and  low-paying positions as associates. So if you’re serious about the law, you have to be prepared to spend time and money.

To make sure that you can obtain your law degree and still be able to eat once you pass the bar, it is imperative to have all of the necessary information.

Federal loans

Many of the same federal loan options available to you for undergraduate school are available for law school. Just as it is for an undergraduate degree, you can fill out a new FAFSA application as an independent student to determine your financial aid need.  You can borrow up to $20,500 ($8,500 of which can be subsidized) and the loan carries a 6.8 percent interest rate. You can also file for a GRADPlus loan, which allows you to borrow up to the cost of education minus any other financial aid. The GradPLUS loan carries an 8.5% interest rate.

The Bar exam

Once you graduate law school, you must next pass the bar exam for the state in which you wish to practice law. Studying for the bar is a difficult and grueling experience. Many students devote much of their time to studying, and can only support a part-time job.  To stay up to speed on your bills and other assorted living experiences, you could consider a Law Board Exam Loan. This is a one-time loan for up to $15,000 and carries a low interest rate.

Law Internship Loan

Getting your foot in the door of the firm of your dreams is tough. Once you pass the bar, you will need some credible experience. Many firms offer internships that can help you pad your resume, but sadly, many of them are unpaid. One option is to take out a Law Internship Loan. Like the Bar Exam loan, this is a one-time $15,000 maximum loan with a low interest rate.

Getting through law school and beyond is a costly and time-consuming affair, but if you really have your heart set on becoming an attorney, it can be a rewarding experience. As with your undergrad loans, you have the option to consolidate once you graduate, spreading out your loan payments and possibly lowering your interest rate.

Click here for a complete overview of your law school financial aid options.

We’ll be back next week with an in-depth look at getting into medical school. Until then, court’s adjourned.

ScholarshipPoints code: LAW32010

Finding the time to get your graduate degree is easier said than done.

You might be balancing a family, a full-time job, etc. In some cases, the only option is to take only one or two classes a semester.

This can make finding graduate student loans complicated, but not impossible. While it’s true that you are ineligible to receive federal financial aid and many private student loans if you go to school less than half the time, there are a number of options that can help you secure money for a graduate degree.

First, you can consider eschewing a graduate degree in favor of an online degree. Online degrees may be more flexible in their course offerings and better fit into your budget. Check out Edvisors.com for additional information about this option and to find out which online school is best for you.

If you have your heart set on attending a traditional grad school, check out the private student loan comparison tool. Some private lenders may have a different set of criteria for providing aid to a prospective graduate student.

If you have a full time job, you should absolutely check with your company to see if there are any tuition reimbursement options. Your employer may cover some, if not all of the costs of attending graduate school if you take classes relevant to your current field.

A question that we receive pretty much daily from our readers is the eternal question of post-undergrad education: should I go for the “name” school?

It actually is a great question, because there are so many pieces that go into choosing the right graduate school for your advanced degree. First, there’s the question of how broad or deep do you want your graduate studies to be? There are generalized degrees like a non-targeted MBA and they go as deep as doctoral studies on the mating habits of tasmanian devils (ok, maybe that was a little random… but you get the point.) In many cases, the super-specialized degrees (like say, geobotany) are actually offered by smaller schools in very targeted locations.

After picking what you want to study, there’s the question of, “how much time can you invest in a graduate degree?” If your answer is relatively little, a part-time or online graduate degree probably is a better fit for you. However, not every graduate degree (like a lab-based science) CAN be completed online, and this should be taken into account.

Alright, so what about name and clout? I will say this: going to a “name” school, almost always at least gets the door slightly open for you. However, a company is not going to hire you just because you went to Harvard or Yale, they are going to hire you because you are bright, serious, and took the time to become a valuable asset in your chosen field.

Not to mention, the “name” schools will charge a lot more tuition just by virtue of their brand equity. They have built up this prestige, and are more than happy to siphon your hard earned money into their coffers for a piece of their legacy. If you are committed to going to a big name school, make sure you file your FAFSA on time, get as many scholarships as possible, and get a private student loan if necessary to cover any excess cost. Also, some companies offer partial or full tuition reimbursement if your degree program is related to your job, so you can check into that as well.

In the end, a “name” school can be that extra edge that gets you your dream job — but without a robust résumé of relevant experience and professional personal demeanor, it isn’t enough on its own.

ScholarshipPoints Redemption Code: GOGRAD2010

It’s 2010, and the world is on the recovery from what many economists call the worst recession since the Great Depression in the 1930s. We get a lot of questions along the lines of “Should I go back to school?”, “Are banks still lending like they used to?”, “are online degrees as good as traditional ones?”… so we decided to take a look at why it is always a good idea to reinvest in your education.

1. More skills = more marketability

One of the fundamental reasons for going to school (or back to school) is to broaden your range of abilities and gain more knowledge to be useful and current in the workplace. Simply put, the more diverse and interesting (but relevant) classes you take, the more perspectives you gain to solve problems and convert them into opportunities. An employer will definitely look more favorably on a candidate with a varied and interesting academic background, and it could even be the difference between a hire or pass if you are equally matched with someone else.

2. More education = higher salary

Countless studies have shown that on the aggregate, those who take the time to go to school and earn degrees in their chosen fields almost always will earn more over their lifetime than those who do not. Not to mention the fact that according to the US Department of Labor Statistics, the higher your education level, the lower your chance of unemployment; this translates into more earnings, less stress, and better overall quality of life.

3. There are plenty of ways to fund your educational investment

From Federal Stafford loans to alternative student loans, to scholarship sources like ScholarshipPoints and Student Scholarship Search, there are a huge amount of resources to pay for school.

When it comes right down to it, spending the money and going to school makes a whole lot of sense in the long run. Plus, you’re sure to meet and network with lots of people and maybe even make some great friends in the process. Win-win.

Scholarship Points Code: GOTOSCHOOL

When it comes to financing graduate school a lot of students wonder if it is better to choose a lesser-know inexpensive school or a more well-known expensive school. Although this is completely a matter of opinion, there are a few justifications for going to a graduate school with a higher pricetag.

1: Your workplace might have a tuition reimbursement program: If you are going to graduate school while you are working you may be able to take advantage of tuition reimbursement benefits.  This means that your employer will pay for you to take classes as long as they are relevant to your field and could help you in your job.

2: Graduate students can qualify for more federal financial aid: Stafford loan limits are a lot higher for graduate students than they are for undergraduate students. In fact, the lifetime aggregate Stafford loan limit is $138,500 for graduate and professional degree students.

3: You may be able to take advantage of income based repayment: Most students coming out of graduate school have loans to pay off. If your monthly loan payments are very high after graduate school you may qualify for income based repayment.This plan helps borrowers keep payments low with caps based on their income and family size. If a borrower still has a loan balance after 25 years it is forgiven completely.

ScholarshipPoints Bonus Code: GRADTUITION

Many people think that graduate students are left out in the cold when it comes to federal financial aid. Fortunately, this is not true at all. In fact, graduate students have just as many federal financial aid options as  undergraduate students.

For graduate students there are both subsidized graduate Stafford loans and unsubsidized Graduate Stafford loans. Subsidized Stafford loans are awarded based on financial need. Any student who qualifies for this kind of loan will not be charged any interest while they are in school. Unsubsidized Stafford loans are not awarded based on financial need. Any eligible student can take out an unsubsidized Stafford loan. The best thing about Stafford loans for graduate students is that the annual loan limits are a lot higher than they are for undergraduate students.

Graduate students also have the opportunity to apply for federal Graduate PLUS loans. This federal loan  low fixed interest rate, but  comes with the flexibility of a private student loan. The Grad PLUS loan is based on credit rather than on need  so as long as student has decent credit they can qualify.

To qualify for any kind of federal financial aid a graduate student must file the FAFSA. If you are planning on attending grad school in the fall of 2010 the time to apply is now.